Correlation Between GREENWICH ASSET and CORNERSTONE INSURANCE
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By analyzing existing cross correlation between GREENWICH ASSET ETF and CORNERSTONE INSURANCE PLC, you can compare the effects of market volatilities on GREENWICH ASSET and CORNERSTONE INSURANCE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GREENWICH ASSET with a short position of CORNERSTONE INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENWICH ASSET and CORNERSTONE INSURANCE.
Diversification Opportunities for GREENWICH ASSET and CORNERSTONE INSURANCE
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENWICH and CORNERSTONE is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GREENWICH ASSET ETF and CORNERSTONE INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNERSTONE INSURANCE PLC and GREENWICH ASSET is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GREENWICH ASSET ETF are associated (or correlated) with CORNERSTONE INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNERSTONE INSURANCE PLC has no effect on the direction of GREENWICH ASSET i.e., GREENWICH ASSET and CORNERSTONE INSURANCE go up and down completely randomly.
Pair Corralation between GREENWICH ASSET and CORNERSTONE INSURANCE
Assuming the 90 days trading horizon GREENWICH ASSET ETF is expected to under-perform the CORNERSTONE INSURANCE. In addition to that, GREENWICH ASSET is 1.05 times more volatile than CORNERSTONE INSURANCE PLC. It trades about -0.17 of its total potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about 0.12 per unit of volatility. If you would invest 236.00 in CORNERSTONE INSURANCE PLC on September 6, 2024 and sell it today you would earn a total of 64.00 from holding CORNERSTONE INSURANCE PLC or generate 27.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
GREENWICH ASSET ETF vs. CORNERSTONE INSURANCE PLC
Performance |
Timeline |
GREENWICH ASSET ETF |
CORNERSTONE INSURANCE PLC |
GREENWICH ASSET and CORNERSTONE INSURANCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GREENWICH ASSET and CORNERSTONE INSURANCE
The main advantage of trading using opposite GREENWICH ASSET and CORNERSTONE INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENWICH ASSET position performs unexpectedly, CORNERSTONE INSURANCE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CORNERSTONE INSURANCE will offset losses from the drop in CORNERSTONE INSURANCE's long position.GREENWICH ASSET vs. VETIVA GRIFFIN 30 | GREENWICH ASSET vs. VETIVA BANKING ETF | GREENWICH ASSET vs. STANBIC IBTC ETF | GREENWICH ASSET vs. LOTUS HALAL EQUITY |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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